Natixis Advisors LLC Cuts Stake in Automatic Data Processing, Inc. $ADP

Key Points

• Natixis Advisors LLC reduced its stake in Automatic Data Processing by 7.6% in the fourth quarter, selling 28,579 shares and leaving it with 347,407 shares valued at about $89.4 million.
• ADP reported better-than-expected quarterly results, with EPS of $3.37 versus $3.30 expected and revenue of $5.94 billion, up 7% year over year. The company also raised its FY2026 EPS guidance to 11.01-11.11.
• The company declared a quarterly dividend of $1.70 per share, payable July 1, implying an annualized yield of 2.9%. Analysts currently have a consensus Hold rating on the stock with a $249 price target.

Natixis Advisors LLC cut its holdings in shares of Automatic Data Processing, Inc. (NASDAQ:ADP - Free Report) by 7.6% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 347,407 shares of the business services provider's stock after selling 28,579 shares during the quarter. Natixis Advisors LLC owned approximately 0.09% of Automatic Data Processing worth $89,364,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also added to or reduced their stakes in the business. Beto Financial Group LLC purchased a new stake in Automatic Data Processing during the fourth quarter valued at about $1,380,000. Allen Investment Management LLC lifted its holdings in Automatic Data Processing by 28.7% during the fourth quarter. Allen Investment Management LLC now owns 978 shares of the business services provider's stock valued at $252,000 after purchasing an additional 218 shares during the last quarter. AXQ Capital LP purchased a new stake in Automatic Data Processing during the fourth quarter valued at about $334,000. BNP Paribas purchased a new stake in Automatic Data Processing during the fourth quarter valued at about $96,000. Finally, COFG Advisors LLC purchased a new stake in Automatic Data Processing during the fourth quarter valued at about $311,000. 80.03% of the stock is owned by hedge funds and other institutional investors.

Automatic Data Processing Trading Down 1.1%

Shares of Automatic Data Processing stock opened at $231.18 on Wednesday. Automatic Data Processing, Inc. has a 12-month low of $188.16 and a 12-month high of $329.93. The company has a market cap of $92.41 billion, a price-to-earnings ratio of 21.57 and a beta of 0.84. The company has a current ratio of 1.04, a quick ratio of 1.04 and a debt-to-equity ratio of 0.63. The company's 50-day moving average price is $208.09 and its 200-day moving average price is $230.62.

Automatic Data Processing (NASDAQ:ADP - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The business services provider reported $3.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.30 by $0.07. Automatic Data Processing had a net margin of 20.12% and a return on equity of 68.82%. The firm had revenue of $5.94 billion for the quarter, compared to the consensus estimate of $5.85 billion. During the same period in the prior year, the firm posted $3.06 earnings per share. The company's revenue for the quarter was up 7.0% on a year-over-year basis. Automatic Data Processing has set its FY 2026 guidance at 11.010-11.110 EPS. On average, equities analysts expect that Automatic Data Processing, Inc. will post 11.07 earnings per share for the current fiscal year.

Automatic Data Processing Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Friday, June 12th will be given a $1.70 dividend. This represents a $6.80 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Friday, June 12th. Automatic Data Processing's dividend payout ratio is 63.43%.

Analyst Upgrades and Downgrades

Several research firms have commented on ADP. UBS Group upped their price objective on shares of Automatic Data Processing from $210.00 to $218.00 and gave the company a "neutral" rating in a report on Thursday, April 30th. Wells Fargo & Company raised shares of Automatic Data Processing from an "underweight" rating to an "equal weight" rating and set a $214.00 price target on the stock in a report on Monday, May 18th. Cantor Fitzgerald lowered their price target on shares of Automatic Data Processing from $306.00 to $244.00 and set an "overweight" rating on the stock in a report on Wednesday, April 29th. TD Cowen raised shares of Automatic Data Processing to a "hold" rating in a report on Monday, May 18th. Finally, Citigroup lowered their price target on shares of Automatic Data Processing from $265.00 to $230.00 and set a "neutral" rating on the stock in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Automatic Data Processing has a consensus rating of "Hold" and a consensus target price of $249.00.

Insider Buying and Selling at Automatic Data Processing

In related news, VP Christopher D'ambrosio sold 543 shares of the company's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $208.45, for a total value of $113,188.35. Following the transaction, the vice president directly owned 8,912 shares in the company, valued at approximately $1,857,706.40. This represents a 5.74% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.20% of the company's stock.

Automatic Data Processing Company Profile

Automatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.

ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.

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